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2022 (5) TMI 713 - AT - Service TaxRefund of service tax paid - rejection on the ground that some services were not identified as specified services by the Approval Committee - interest on delayed refund - HELD THAT - In the appellant s own case M/S. INTAS PHARMA LIMITED VERSUS COMMISSIONER OF SERVICE TAX AHMEDABAD 2013 (7) TMI 703 - CESTAT AHMEDABAD the benefit of refund has been allowed in respect of services not listed as a specified services approved by the approval committee - thus the appellants are entitle to refund in respect of services received by them for the authorized operations even if such services are not listed as a specified services in the list approved by the Approval Committee. Interest on delay in payment of refund in terms of Section 11BB - HELD THAT - There is no specific mechanism provided for notification No. 12/2013-ST. Consequently all these refund would be governed by Section 11B and therefore the appellant would be entitle to interest in terms of Section 11BB. Appeal allowed - decided in favor of appellant.
Issues:
Appeal against partial rejection of refund claim and denial of interest. Analysis: 1. Refund Claim Rejection: The appellant, a pharmaceutical company in SEZ, filed appeals against the partial rejection of refund claims and denial of interest. The rejection was based on the ground that some services received were not identified as specified services by the Approval Committee. The appellant argued that previous decisions in their favor supported their claim for refund, emphasizing that the SEZ Act allows duty-free receipt of services for authorized operations. They highlighted Notification No.12/2013-ST as the basis for claiming refunds without the need for approval by the committee. The appellant cited various tribunal decisions to support their argument, asserting their entitlement to refunds under Section 11B of the Central Excise Act. 2. Legal Interpretation: The learned counsel for the appellant contended that the SEZ Act's provisions should override any conflicting laws, emphasizing Rule 31 of the SEZ Rules, 2006, which exempts service tax on services rendered to SEZ units for authorized operations. The appellant relied on tribunal decisions like MAKERS MART Vs. CCE &ST and ZYDUS HOSPIRA ONCOLOGY PVT. LTD. to support their position. The appellant also claimed interest under Section 11BB of the Central Excise Act, citing the case of RANBAXY LABORATORIES LTD. The Tribunal noted that the appellant was entitled to refunds for services received for authorized operations, even if not specified by the Approval Committee, based on previous decisions and legal provisions. 3. Opposing Arguments: The learned AR, representing the respondent, relied on the impugned order and a tribunal decision in the case of KOLLAND DEVELOPERS PVT. LTD. to argue against the appellant's refund claim. The AR emphasized that Notification No. 12/2013-ST restricts exemptions to services approved by the approval committee. However, the Tribunal found that the appellant's entitlement to refunds was not contingent on services being listed as specified services by the committee, contrary to the respondent's arguments. 4. Interest on Refund: The Tribunal addressed the issue of interest on delayed refund payments, referencing the case of RANBAXY LABORATORIES LTD. to establish the appellant's right to interest under Section 11BB of the Central Excise Act. The Tribunal clarified that the absence of a specific mechanism under Notification No. 12/2013-ST meant that refunds would be governed by Section 11B, entitling the appellant to interest as per legal precedent. Consequently, the appeals were allowed in favor of the appellant, affirming their entitlement to refunds and interest on delayed payments. This detailed analysis of the legal judgment highlights the key arguments, legal interpretations, and decisions made by the Tribunal regarding the refund claim rejection and interest denial, providing a comprehensive overview of the case.
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